Recruitment and Pay at the Establishment Level: Gender Segregation and the Wage Gap in Portugal

20 Pages Posted: 22 Jun 2003

See all articles by José António Cabral Vieira

José António Cabral Vieira

University of the Azores - Department of Economics and Business; IZA Institute of Labor Economics

Ana Rute Cardoso

Instituto de Analisis Economico (IAE-CSIC); Barcelona Graduate School of Economics (Barcelona GSE); IZA Institute of Labor Economics

Miguel Portela

University of Minho; IZA Institute of Labor Economics

Date Written: June 2003

Abstract

This paper aims at quantifying the trend in worker segregation at the establishment level and its impact on wages in Portugal over a fifteen year period. We concentrate on the gender dimension, to answer the questions: have changes in recruitment policies at the establishment level resulted in higher gender segregation in the labour market? What is the impact of segregation on wages? Is that impact different for men and women? A large linked employer-employee data set is used. Systematic and random components of segregation are computed. We use standard wage decomposition techniques to evaluate the impact of the composition of the labour force at the establishment level on wages. Results reveal a high degree of systematic gender segregation. A higher proportion of females in the establishment lowers females' wages while, on the contrary, it raises males' wages. Between mid-80s and late-90s, the contribution of the gender composition of the workforce within the establishment to the wage gap increased, though fluctuating within that period. The evidence gathered lends support to the taste-based model of employer behaviour.

Keywords: Systematic Segregation, Random Segregation, Gender, Wage Inequality

JEL Classification: J31, D21, J7

Suggested Citation

Cabral Vieira, José António and Cardoso, Ana Rute and Portela, Miguel, Recruitment and Pay at the Establishment Level: Gender Segregation and the Wage Gap in Portugal (June 2003). Available at SSRN: https://ssrn.com/abstract=418620 or http://dx.doi.org/10.2139/ssrn.418620

José António Cabral Vieira

University of the Azores - Department of Economics and Business ( email )

9501-801 Ponta Delgada Azores
Portugal

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Ana Rute Cardoso (Contact Author)

Instituto de Analisis Economico (IAE-CSIC) ( email )

Campus UAB
Barcelona, Bellaterra 08193
Spain
3436917157 (Phone)

Barcelona Graduate School of Economics (Barcelona GSE) ( email )

Ramon Trias Fargas, 25-27
Barcelona, Barcelona 08005
Spain

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany
492283894508 (Phone)
492273894510 (Fax)

Miguel Portela

University of Minho ( email )

Braga, 4700
Portugal

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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